Mobile Moves: PayPal Teams with 23 U.S. Retailers, NCR

By Andrew Deichler

Published: 2013-01-16

With mobile developments reshaping the payments landscape, AFP brings together the top mobile payments trend information to help corporates track this evolving industry. This feature appears monthly in AFP’s Payments newsletter. Follow @Mobile_Moves on Twitter for all the latest updates.

PayPal Teams with 23 U.S. Retailers, NCR

PayPal said this week that 23 large U.S. retailers representing 18,000 stores are now equipped to accept PayPal payments. Additionally, the e-commerce giant announced a deal with NCR that will give it even more access to brick-and-mortar stores.

PayPal reported at the National Retail Federation show in New York this week that it has exceeded its May 2012 goal of signing up 20 large U.S. retailers for its mobile wallet service by the end of 2012. PayPal’s service differs from many other mobile wallets in that customers need only enter their phone number and a PIN to make payments.

The NCR deal expands PayPal’s network even further. PayPal will now be available as a menu option for the recently announced NCR Mobile Pay app, which allows restaurant patrons to review orders and pay. PayPal also will be integrated into NCR’s Convenience-Go (C-Go), a store-branded app for making payments at gas stations and convenience stores. NCR will also enhance its Netkey Endless Aisle app so that consumers can use PayPal to either buy items in-store or order out-of-stock items.

UK Banks Commit to Mobile Payments Service

Financial institutions representing 90 percent of current accounts in the UK have committed to the spring 2014 launch of the UK Payments Council’s mobile payment service. The Payments Council said its service will allow for secure payments to be made directly from an account using a mobile phone number, without the need to disclose account details. The new service will move money between accounts using the Faster Payments Service and the LINK interbank ATM network.

The Payments Council recently surveyed more than 5,000 consumers and found that one in three smartphone users is likely to sign up for the mobile payments service. The survey also highlighted the importance of security in mobile payments. The Payments Council noted that, at minimum, a passcode or similar security feature will be required to authorize payments. FIs will also be able to disable an account in the event of suspicious activity.

The Payments Council is currently working on minimum service standards for security, speed and other technical requirements.

One-Third of Europe to Use V.me by 2020?

Visa Europe is rolling out its V.me digital wallet this year in the UK, France and Spain. UK banks representing 80 percent of consumers are already committed, and Visa expects one-third of all Europeans to be on board with the service by 2020.

V.me allows users to complete online transactions through internet browsers on their smartphones, tablets, PCs and laptops. The service is particularly concerned with security and shields customers’ card details from online merchants. Visa said that V.me will also eventually incorporate contactless transactions at the point-of-sale and person-to-person payments.

Additionally, Visa continues to roll out contactless payments for cards and mobile devices in Europe. Contactless transactions in Europe quadrupled in 2012 and Visa expects repeat growth in 2013. Visa noted that 40 issuers will be offering mobile contactless payment services by the end of the year and 80 types of smartphones will be certified by Visa to complete contactless payments.

You May Also Be Interested In...

April 2013 Payments Newsletter This month, we speak with treasurers and fraud experts and get their
reactions to the 2013 Payments Fraud & Control Survey, underwritten
by J.P. Morgan. Also this month, a follow-up to the CAPP Exercise, financial professionals get a big win in an appeals court ruling, the
UK payments industry appears to be headed for stricter regulation, and more.

Regulatory Overhaul of UK Payments Systems Coming?The UK Government has proposed a regulatory overhaul of the nation’s payments systems. A new regulator would be put in place, supplanting the Payments Council and ending the industry’s current practice of self-regulation.

Over 400 FIs Complete Cyberattack ExerciseFS-ISAC reported that 446 financial institutions completed the 2012 Cyber Attack against Payment Processes (CAPP) exercise held in November 2012. Over a three-day period, FS-ISAC presented participants with a series of complex simulated attacks based on real-world scenarios.